10227 (2025). Hon Dr Ayesha Verrall to the Minister of Health

10227 (2025). Hon Dr Ayesha Verrall to the Minister of Health: What savings targets, if any, are currently expected of each business unit within Te Whatu Ora, listed by business unit and dollar value?

Hon Simeon Brown: As the Member will be aware, the Health NZ Financial Management Review found that previous decisions to restructure the health system in the middle of a pandemic led to a loss of financial controls, resulting in an unmitigated structural deficit of $1.76 billion in 2024/25. As a result, I am advised that Health New Zealand has made deliberate efforts to get back to budget by focusing cost management on the consolidation of non-frontline staff and to avoid disruptions to clinical services. I am further advised that all activities have been risk assessed with clinical leads to ensure any impacts were considered in the decision-making process. Business units in Health New Zealand are expected to work towards a fixed budget allocation for 2024/25. Expenditure in each of the business units is being aligned to their budget allocation to support a return to financial sustainability. Ensuring that all New Zealanders have access to timely, quality healthcare requires finding efficiencies within our health agencies to ensure a tight focus on the delivery of frontline care.